Entrepreneurship

Instructor: Engr. Khubaib

Business
Before a potential entrepreneur can start a business, he or she must understand
what the essence of a business is:
A business can be defined by multiple definitions:
“An organization operated with the objective of making a profit from the sale of
goods or services.”
”An enterprise, commercial entity, or firm in either the private or public sector,
concerned with providing products (goods or services) to satisfy customer
requirements.”
‘The buying and selling of products or services in order to make a profit.”
(Mariotti,2006)
Business
The common elements in most of the definitions described above are:
• A business sells or buys services and products.
• The objective of a business is to make a profit.
• All business entities have customers with specific needs and wants.
• Business requires a solid financial stability.

In most cases a potential entrepreneur will be creating a

“small business” that he or she hopes to grow into a
large and successful enterprise.
 The Art and science of

Entrepreneurship Starting a new Business

What is Entrepreneurship?
Entrepreneurship
Entrepreneurship is more than simply starting or operating a small business.
Entrepreneurship is both a science and an art.
• The science lies in the proven process of planning and managing business.
• The art lies in the innovative thought, implementation and growth of a business.
Entrepreneurship Qualities : The Art
• Vision
• Passion
• Attitude

• Values
• Innovator
• Perseverance

Every successful entrepreneur has

either all of most Qualities and they,
in fact thrive on them. One can learn
• Self-Motivated
• Leadership
• Experience
• Focus from the lives of the very successful
entrepreneurs that supports the
stated behavior.
Entrepreneurship Qualities : The
Science
• Identify Opportunity
• Evaluate feasibility
• Assemble Resources
• Find Potential Customer
• Identify Markets
• Build Sales Strategy
• Quantify Value proposition

‘science’ as it teaches one how to systematically build

• Revenue Generation a successful startup.
• Financial Viability
• Product Development
• Business Plan
In nutshell learn the art and science of entrepreneurship before taking a
• Pitching to Investor
plunge!
Entrepreneurship-Self Reflection
Question
Take a couple of minutes and reflect on what you understand by the term

Entrepreneurship………?????
How would you define it?
Make some notes in your personal
Notebook
 Entrepreneurship
From an economic perspective, Entrepreneurship can be defined as:

Entrepreneurship is a dynamic, social process where individuals, alone or in

collaboration identify opportunities for innovation and act upon them by
transforming ideas into practical targeted activities whether in a social, cultural
or financial context.

Entrepreneurship however involves much more than just for a business to be

successful and sustainable.
Entrepreneurship-from Bags to
Riches
Entrepreneurship-from Bags to
Ultimately innovative idea
Riches transform the trash into
valuable product.
Entrepreneurship-Hobby to Business
When John Vence sent his son Michael
off to college, he equipped the young
man with a loft bed to maximize tight
space in the campus dormitory. Word of
mouth soon spread, and Vence was
delivering loft beds hundreds of miles
from his home in Horseheads, New York.
Demand got so great that Vence
investigated what was necessary to ship
his beds nationally and turned the hobby
into a full-time business. Today, College
Bed Lofts employs 18 people, making and
selling about 5,000 unfinished wood lofts
a year to customers coast to coast.
Entrepreneurship
Ultimately entrepreneurship:
• Has impact on individuals.
• Provides financial opportunities.
• Has an impact on the economic well‐being of a society.
• Requires Innovation.
• Is dynamic
So far conclude that entrepreneurship is more than just about business success and
sustainability. Its about making business by establishing new enterprise, and
addition of new dimensions, such as innovation and other areas of the environment
e.g. the social, cultural and financial context.
Entrepreneurship-Self Reflection
Question
Take a couple of minutes and reflect on what you understand by the term

Addition of new dimensions………?????

How would you define it?
Write some business model that add new
dimensions to their business and get
maximum results?
Important Aspects Of
Entrepreneurship
Entrepreneurship means that an individual must be able to:
Identify An Opportunity ‐ This means that there must be a real businessopportunity.
Be innovative and creative ‐ Something new and different is required that isneeded
by a target audience.
Gather resources ‐ Capital, labor and operating equipment must be found.
Create and grow a business ‐ This means the start of a new business venture or the
conversion of an existing business.
Take risk ‐ There will be both personal and financial risks.
Create rewards ‐ Reward can be in the form of profit or increased value of the
business.
Manage a business ‐ This means that there must be planning, organisation,
leadership and control of all the functions.
Important Aspects Of
Entrepreneurship
Entrepreneur
Entrepreneurship is a process of starting a new business,
generally there also needs to be someone who undertakes
such a process?

That is the
Entrepreneur.
 Entrepreneur
The Person Who Plans, Implements And Manages A Small Business Is Usually
Called An Entrepreneur.
Other Definitions are:
An entrepreneur, can be defined as "one who undertakes innovations, finance and
business acumen in an effort to transform innovations into economic goods.
(Wikipedia)
OR
An entrepreneur is someone (person) who in pursuit of profits and at a risk makes
the most ofthe opportunities in the environment by combining the expertise and
resources of the community in different ways to produce products and services for
the market.
 The entrepreneur lives
in the future, never in
Entrepreneur the past, rarely in the
present. He is happiest
So based on the above definitions an entrepreneur must: when left free to
construct images of
• Be a risk taker.
• Be innovative.
‘what if’ and ‘if‐
• Possess business acumen.
when’.
• See potential opportunities in the community.
In Short:
A person who sees an opportunity in the market gathers his/her resources and
creates and grows a business venture to meet those needs. This person will bear the
risk and will be rewarded with profit if the venture is successful.
 Entrepreneur Traits
• He should be a visionary
• Dreamer
• Energetic
• Change acceptor
• Pro active
• Planner……………………….
To a name of few
We can conclude that entrepreneurship is the business process and the
entrepreneur is the person involved in implementing the entrepreneurial
process.
 Why Be an Entrepreneur?
• Making Your Own Rules. When you own a business, you get to be your own boss.

• Doing Work You Enjoy. Since the majority of most peoples lives spent in working, why not
spend that time doing something you enjoy?

• Creating Greater Wealth. There’s no limit to what an entrepreneur can make.

• Helping Your Community. Being an entrepreneur lets you make your community and world a
better place.
The biggest reward of becoming an entrepreneur is the personal satisfaction that
comes from having the freedom to make your own business decisions and then
act on them.
Risks of Being an Entrepreneur
• Potential Business Failure. Being fully responsible means the success or failure of
your business rests on you.
• Unexpected Obstacles. Problems can happen that you don’t expect.
• Financial Insecurity. Many new businesses don’t make much money in the
beginning, so you may not always be able to pay yourself.
• Long Hours and Hard Work. It’s not unusual for entrepreneurs to work a lot of
extra hours to make their businesses successful. This is especially true during the
initial start-up process.
Entrepreneurship Process
Entrepreneurship is a difficult task, as a majority of new businesses fail. therefore
important that the entrepreneur follow the steps in the entrepreneurial process.
KODAK (1889-2012)
World’s biggest film company, Kodak could not keep up with the digital
revolution, their leadership had a number of opportunities to steer the
company in the right direction but its hesitation to fully embrace the transition
to digital led to its demise.

BlackBerry
Once a time in mid of 2000,s there were 80 million Blackberry users in the
world, but Blackberry ignored touch screen based technology iPhone started to
dominate through innovation , Blackberry’s failure to innovate meant they were
quickly down to a market share of 0.2% by early 2016.
Entrepreneurship-Self Activity

Explore and write short views in your

own word on the failure/downfall of :
Entrepreneurship Process
1. SELF DISCOVERY
Learning what you are doing; examining your strengths and weaknesses. Examining
work experience and relating it to potential opportunities.
Entrepreneurship Process
2. IDENTIFYING OPPORTUNITIES
Looking for needs, wants, problems and challenges that are not yet being met or
dealt with effectively
Entrepreneurship Process
3. GENERATING AND EVALUATING IDEAS
Using creativity and past experience to devise new and innovative ways to solve a
problem, or meet a need and then narrowing the field to one best idea.
Entrepreneurship Process
4. PLANNING
Researching and identifying resources needed to turn the idea into a viable venture.
Preparing the research in the form of a written business plan. Preparing marketing
strategies.
Entrepreneurship Process
5. RAISING START‐UP CAPITAL
Using the business plan to attract investors, venture capitalists partner. This stage
can involve producing prototypes or testmarketing services
Entrepreneurship Process
6. START‐UP
Launching the venture, developing a customer base and adjusting marketing and
operational plans as required
Entrepreneurship Process
7. GROWTH
Growing the business: developing and following strategic plans, adapting to new
circumstances
Entrepreneurship Process
8. HARVEST:
Selling the business and harvesting the rewards. For many entrepreneurs, this also
means moving on to new ventures and new challenges.
Entrepreneurship Process
Nieman, Hough, and Nieuwenhuizen (2003) break the entrepreneurial process into
four phases:
Why Study Entrepreneurship? eop le
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2. Listen: pay attentions to what others b o ion
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3. Think: Don’t Complain about problems- nin a
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analyze it and suggest solutions
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 Thank You…….!!!!!!

“If you cannot do great things , do small things in a great way”